Costs & Cost Controls

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November 2024
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UnitedHealth Group explores acquisition of Surgery Partners amidst antitrust scrutiny

Editor's Note UnitedHealth Group (UHG) is in early talks to potentially acquire Surgery Partners, the third-largest operator of ambulatory surgical centers (ASCs) in the US, according to Bloomberg, Healthcare Finance August 26 reports. Surgery Partners has also attracted interest from private equity firms, including TPG Inc. While no deal is…

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By: Tarsilla Moura
August 28, 2024
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S&P report: Nonprofit hospital downgrades outpaced upgrades in 2023

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Editor's Note An S&P report published on August 7 revealed that downgrades of nonprofit hospital ratings outpaced upgrades in 2023, a trend expected to persist despite a slowing pace, Becker’s Hospital CFO Report August 12 reports. The report, which analyzed nonprofit acute healthcare medians, showed a downgrade-to-upgrade ratio of 3.8…

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By: Tarsilla Moura
August 28, 2024
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How GLP-1 drugs impact health systems expansion, investment plans

Editor's Note A shuttered bariatric surgery center in Oklahoma last month is just one example of how the rise of Glucagon-like peptide-1 (GLP-1) agonists are reshaping health systems’ investments, Axios reported August 13. Rather than “massive hospital towers with cardiology clinics, dialysis beds and joint replacement centers,” the focus is…

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By: Matt Danford
August 23, 2024
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California bill seeks stricter oversight of private equity in healthcare

Editor's Note A bill in California that aims to increase oversight of private equity healthcare investments is receiving support from consumer advocates, labor unions, and the California Medical Association and opposition from hospitals worried about losing funding sources, the Los Angeles Times reported August 9. Sponsored by Attorney General Rob…

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By: Matt Danford
August 20, 2024
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Nearly 1 in 3 US rural hospitals at risk of closure

Editor's Note More than 700 rural hospitals, representing 31% of all rural hospitals in the country, are at risk of closure, according to a report from the Center for Healthcare Quality & Payment Reform. Chief Healthcare Executive reported the news August 8. According to the article, 16% of all rural…

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By: Matt Danford
August 15, 2024
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Medicare drug price negotiations to save $6 billion in first year

Editor's Note Medicare’s first negotiations on 10 top-selling prescription drugs for older Americans will save the US government $6 billion in the first year, according to an August 15 article in Reuters. Enabled by President Joe Biden’s 2022 Inflation Reduction Act, negotiations for drugs used by Medicare—which covers 66 million…

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By: Matt Danford
August 15, 2024
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Cash flow problems plague US nonprofit hospitals, health systems

Editor's Note A new low for median days cash-on hand could spell trouble for US nonprofit hospitals and health systems, Healthcare Dive reported August 12. “Nonprofit hospitals’ cash on hand — the funds immediately available to finance daily operations — is one indicator of financial health,” the outlet reports. “Low cash…

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By: Matt Danford
August 14, 2024
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Vertical integration favors HOPDs over ASCs

Editor's Note Medicare and patient out-of-pocket costs are rising as vertical integration results in more procedures moving to hospital outpatient departments (HOPDs) than to ambulatory surgical centers (ASCs), Becker’s ASC Review reported on August 8. The article summarizes a study published July 25 in Science Direct. Described as "physician vertical…

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By: Matt Danford
August 14, 2024
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2025 IPPS payment rule criticized

Editor's Note The American Hospital Association (AHA) criticized new inpatient prospective payment system rates issued August 1 by the Centers for Medicare and Medicaid Services (CMS), citing the potential of financial struggles for hospitals and reduced access for patients, particularly in rural or underserved areas. Under the new rule, most…

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By: Matt Danford
August 6, 2024
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Healthcare pays dearly for data breaches

Editor's Note Responding to and recovering from data breaches in healthcare is more expensive than any other industry, according to a report by IBM and the Ponemon Institute. Healthcare Dive reported on the results August 1. According to that article, the $9.8 million average cost for a breach this year…

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By: Matt Danford
August 5, 2024
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